Shree Cement Q2 Results Review - Capacity Addition In Fast Lane: IDBI Capital

"BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..IDBI Capital Report.Shree Cement Ltd.'s Q2 FY24 (standalone) Ebitda came in line with consensus estimate. If compared with peers then Shree Cement reported Ebitda/tonne of Rs 1061 and is higher than its peers like Ultratech Cement Ltd. Though volume growth and asset utilisation was lower then Ultratech and company guided this to improve in Q3 FY24. Price hikes of Rs 500/tonne is sustaining in east and reduction in power and fuel cost by 10% QoQ in Q3 FY24 to drive profitability. Shree Cement has preponed its capacity addition plans, with target to reach capacity of 56 million tonnes per annum by FY24E and 62 mtpa by FY25E and 80 mtpa by CY2028E. We have currently modeled 50 mtpa by FY24E, 53 mtpa by FY25E. And thus there is upside risk to our estimate. Post the result we have reduced fuel cost and thus Ebitda is increased by 6% for FY24E/25E and target price is revised to Rs 26008 (earlier Rs 24406). Retain 'Hold' rating..Click on the attachment to read the full report:.Shree Cement Q2 Results Review - Muted Performance; Rich Valuation; Maintain 'Sell': Dolat Capital.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Shree Cement Q2 Results Review - Capacity Addition In Fast Lane: IDBI Capital

From its current installed capacity of 50 mtpa, it plans to add 3.5 mtpa in Nawalgarh, 3 mtpa Guntur to reach 56.5 mtpa by FY24E.

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Shree Cement Q2 Results Review - Capacity Addition In Fast Lane: IDBI Capital

From its current installed capacity of 50 mtpa, it plans to add 3.5 mtpa in Nawalgarh, 3 mtpa Guntur to reach 56.5 mtpa by FY24E.

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